Viatical Settlement Companies

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Are you looking for the right viatical settlement company to help with your situation? Follow this guide as we compare viatical settlement companies to help make the best decision for your needs.

What to know

What’s a viatical company?
Viatical settlement providers
Viatical settlement brokers
Qualities of a good company
Compare companies
FAQ’s

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What’s a viatical settlement company?

Since we already reviewed the basics of viaticals, we won’t go into too much detail but feel free to check it out if you’re interested.

There are two main types of viatical settlement companies. They are viatical settlement providers & viatical settlement brokers. We’ll review each type of company and provide you a list below.

Viatical settlement providers

A viatical settlement provider is a type of life insurance company that buys life insurance policies from a policy owner with a terminal or chronic illness (of any age). Viatical settlement providers are the buyers in the transaction.

Viatical providers represent the secondary life insurance market. Similar to how Fannie Mae buys homes/mortgages on the secondary real estate market. Viaticals are similar to real estate transactions.

Viatical settlement providers do not have a fiduciary duty to the seller. A fiduciary is a legally mandated ethical obligation to act in a person’s best interest. However, this can be a slippery slope, and here’s why. Anyone can say they have a “fiduciary duty” but may not be legally obligated to exercise it. In short, saying one is a fiduciary doesn’t necessarily make them one. This is important because viatical providers do not represent sellers’ best interests.

Why you ask? Because their motivation is to purchase a life insurance policy at a discount.

For this purpose, federal and state financial regulators license brokers who mediate the transactions between buyers and sellers. Similar to a real estate agent. Let’s explore the role of a viatical settlement broker.

Viatical settlement brokers

Viatical settlement brokers are licensed viatical companies who are legally mandated to represent the seller of a viatical settlement transaction. As mentioned, settlement brokers are like real estate agents but instead of selling homes, they help you sell your life insurance policy for the highest payout for a commission. They maximize the payouts by auctioning the policy among the top-rated viatical settlement providers. Viatical broker services offer more than just maximum payouts. A good life settlement brokers earn their weight in gold. They ensure their clients are saving time by streamlining the process and safely guiding clients through the process to avoid common pitfalls.

Looking for the best viatical settlement company to work with? Here’s a quick list and how they compare with Bridge.

Not all viatical companies are created equal. Beware of marketing organizations posing as a licensed providers or brokers. If they can't give you a definitive answer, avoid them!

Qualities of a good viatical company

For most people, it’s obvious how to spot bad companies but what characteristics should you look for in a good viatical company?

Due to the sensitive nature of viaticals, you should identify if the company or person you are talking to cares about your situation over profit. You should get a sense of this by the questions they ask you. Are they transparent? Do they explain who they are, their company, their license, the process, alternatives, and compensation?

Are they trying to buy your policy upfront or are they educating and guiding you through the process?

Do they provide a seller’s guide, application, and licenses for you to cross-reference?

Do they have good reviews and are they reputable?

Take your time researching viatical companies and use your best judgment. Always ask for other expert advice.

Comparing the top 10 viatical settlement companies

Deciding which viatical companies to sell your policy through can have a major financial impact. Below is a simple illustration of the main differences between viatical brokers vs providers. Below that we list the top viatical companies for you to compare.

“Very helpful and knowledgeable…Highly recommend. No pressure. Kind concerning and outstanding professionalism…”

Ellis P. – FL.

Viatical Links

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Bridge vs other companies

Click any company to see how Bridge viatical brokers compare with other viatical companies.

FAQ’s

How much is paid in a viatical settlement?

Everyone’s life insurance policy and health situation is different. According to LISA, in 2023 policyowners received 5 times the surrender value on average.

Who buys viatical settlements?

Viatical settlement providers buy policies and brokers facilitate transactions.

Do you pay taxes on a viatical settlement?

Typically not due to terminal status due to HIPPA. Talk with a tax professional to learn more.

How long does a viatical settlement take?

Viaticals average 4 to 8 weeks depending on the policy, health, and closing procedures. Viaticals typically pay out faster due to severity.

Final thoughts

Viatical settlements are a safe option for anyone under the age of 65 or over looking to get money out of their existing policy to help cover the things that matter most. Although a viatical is not for everyone, it’s important to consider all your options before making a decision. If you have any questions regarding this resource, feel free to Ask Bridge, a trusted viatical settlement broker today.

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